For this upcoming quarter the markets leading economists are hoping for a rebound strong enough to lift the nation out of recession, only to be lifted higher in the December quarter.
A case of 12 economists are sketching in a median result of 0.35 per cent growth for the third quarter, rising to 1.4 per cent for the fourth quarter of 2020, which is highly dependent on a rise in consumer spending which saw a major tumble of more than 12% for the second quarter.
For the clearest path out of the recession consumer faith needs to be restored believes Commonwealth Bank Chief economist Stephen Halmarick after commenting, “The key is for people to feel confident enough to go out and spend the income provided by the government.”
“The government’s income support schemes have generated a spending war chest for households, who due to lack of opportunity built their rate of savings to 20 per cent. This gives households plenty of spending firepower over coming months as our economy is reopening,” said Matthew Peter, chief economist at QIC who believes that the economic fundamentals of the nation are sound.
This is a brief summary of the article ‘Economy tipped for rebound in third quarter’ by Sarah Turner | The West Australian |Friday 4th September 2020.